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Investment Securities
 3 Months Ended
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
 
The amortized cost and estimated fair value of securities were as follows:
 
 
March 31, 2018
 
 
Amortized
 Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(dollars in thousands)
Investment securities available-for-sale:
 
 

 
 
 
 
 
 
Agency
 
$
44,208

 
$
60

 
$
(104
)
 
$
44,164

Corporate
 
103,671

 
1,084

 
(349
)
 
104,406

Municipal bonds
 
225,201

 
1,522

 
(3,066
)
 
223,657

Collateralized mortgage obligation: residential
 
32,223

 
97

 
(611
)
 
31,709

Mortgage-backed securities: residential
 
470,502

 
111

 
(11,306
)
 
459,307

Total investment securities available-for-sale
 
875,805

 
2,874

 
(15,436
)
 
863,243

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
 
23,434

 
—

 
(644
)
 
22,790

Other
 
1,125

 
—

 
—

 
1,125

Total investment securities held-to-maturity
 
24,559

 
—

 
(644
)
 
23,915

Total investment securities
 
$
900,364

 
$
2,874

 
$
(16,080
)
 
$
887,158


 
 
December 31, 2017
 
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(dollars in thousands)
Investment securities available-for-sale:
 
 

 
 
 
 
 
 
Agency
 
$
47,051

 
$
236

 
$
(78
)
 
$
47,209

Corporate
 
78,155

 
1,585

 
(194
)
 
79,546

Municipal bonds
 
228,929

 
3,942

 
(743
)
 
232,128

Collateralized mortgage obligation: residential
 
33,984

 
132

 
(335
)
 
33,781

Mortgage-backed securities: residential
 
398,664

 
266

 
(4,165
)
 
394,765

Total investment securities available-for-sale
 
786,783

 
6,161

 
(5,515
)
 
787,429

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
 
17,153

 
—

 
(209
)
 
16,944

Other
 
1,138

 
—

 
—

 
1,138

Total investment securities held-to-maturity
 
18,291

 
—

 
(209
)
 
18,082

Total investment securities
 
$
805,074

 
$
6,161

 
$
(5,724
)
 
$
805,511



Unrealized gains and losses on investment securities available-for-sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At March 31, 2018, the Company had an accumulated other comprehensive loss of $12.6 million, or $8.9 million net of tax, compared to an accumulated other comprehensive loss of $646,000, or $415,000 net of tax, at December 31, 2017.

At March 31, 2018, mortgage-backed securities ("MBS ") with an estimated par value of $59.7 million and a fair value of $60.1 million were pledged as collateral for the Bank’s two repurchase agreements, which totaled $18.5 million, and homeowner’s association (“HOA”) reverse repurchase agreements, which totaled $25.4 million.

At December 31, 2017, MBS with an estimated par value of $55.6 million and a fair value of $57.0 million were pledged as collateral for the Bank’s three repurchase agreements, which totaled $28.5 million, and HOA reverse repurchase agreements, which totaled $17.6 million.

At March 31, 2018 and December 31, 2017, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity.

The Company reviews individual securities classified as available-for-sale to determine whether a decline in fair value below the amortized cost basis is temporary because (i) those declines were due to interest rate changes and not to a deterioration in the creditworthiness of the issuers of those investment securities, and (ii) we have the ability to hold those securities until there is a recovery in their values or until their maturity.

If it is probable that the Company will be unable to collect all amounts due according to contractual terms of the debt security not impaired at acquisition, an other-than-temporary impairment ("OTTI") shall be considered to have occurred. If an OTTI occurs, the cost basis of the security will be written down to its fair value as the new cost basis and the write down accounted for as a realized loss.

The Company did not realize any OTTI losses for the three months ended March 31, 2018 and December 31, 2017.

The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous loss position.
 
March 31, 2018
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
19

 
$
42,806

 
$
(82
)
 
1

 
$
1,358

 
$
(22
)
 
20

 
$
44,164

 
$
(104
)
Corporate
22

 
98,346

 
(210
)
 
2

 
6,060

 
(139
)
 
24

 
104,406

 
(349
)
Municipal bonds
289

 
207,591

 
(1,960
)
 
32

 
16,066

 
(1,106
)
 
321

 
223,657

 
(3,066
)
Collateralized mortgage obligation: residential
11

 
23,452

 
(351
)
 
3

 
8,257

 
(260
)
 
14

 
31,709

 
(611
)
Mortgage-backed securities: residential
105

 
355,559

 
(6,875
)
 
42

 
103,748

 
(4,431
)
 
147

 
459,307

 
(11,306
)
Total investment securities available-for-sale
446

 
727,754

 
(9,478
)
 
80

 
135,489

 
(5,958
)
 
526

 
863,243

 
(15,436
)
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
4

 
16,773

 
(421
)
 
1

 
6,017

 
(223
)
 
5

 
22,790

 
(644
)
Total investment securities held-to-maturity
4

 
16,773

 
(421
)
 
1

 
6,017

 
(223
)
 
5

 
22,790

 
(644
)
Total investment securities
450

 
$
744,527

 
$
(9,899
)
 
81

 
$
141,506

 
$
(6,181
)
 
531

 
$
886,033

 
$
(16,080
)

 
December 31, 2017
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
6

 
$
13,754

 
$
(78
)
 
—

 
$
—

 
$
—

 
6

 
$
13,754

 
$
(78
)
Corporate
4

 
10,079

 
(64
)
 
2

 
6,076

 
(130
)
 
6

 
16,155

 
(194
)
Municipal bonds
103

 
61,313

 
(268
)
 
30

 
15,658

 
(475
)
 
133

 
76,971

 
(743
)
Collateralized mortgage obligation: residential
5

 
13,971

 
(149
)
 
3

 
8,943

 
(186
)
 
8

 
22,914

 
(335
)
Mortgage-backed securities: residential
66

 
220,951

 
(1,600
)
 
41

 
110,062

 
(2,565
)
 
107

 
331,013

 
(4,165
)
Total investment securities available-for-sale
184

 
320,068

 
(2,159
)
 
76

 
140,739

 
(3,356
)
 
260

 
460,807

 
(5,515
)
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
2

 
10,745

 
(133
)
 
1

 
6,198

 
(76
)
 
3

 
16,943

 
(209
)
Total investment securities held-to-maturity
2

 
10,745

 
(133
)
 
1

 
6,198

 
(76
)
 
3

 
16,943

 
(209
)
Total investment securities
186

 
$
330,813

 
$
(2,292
)
 
77

 
$
146,937

 
$
(3,432
)
 
263

 
$
477,750

 
$
(5,724
)

The amortized cost and estimated fair value of investment securities at March 31, 2018, by contractual maturity are shown in the table below.

 
One Year
or Less
 
More than One
Year to Five Years
 
More than Five Years
to Ten Years
 
More than
Ten Years
 
Total
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
(dollars in thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
$
—

 
$
—

 
$
—

 
$
—

 
$
19,761

 
$
19,726

 
$
24,447

 
$
24,438

 
$
44,208

 
$
44,164

Corporate
—

 
—

 
—

 
—

 
91,671

 
92,330

 
12,000

 
12,076

 
103,671

 
104,406

Municipal bonds
4,463

 
4,463

 
31,257

 
31,194

 
73,327

 
72,004

 
116,154

 
115,996

 
225,201

 
223,657

Collateralized mortgage obligation: residential
—

 
—

 
—

 
—

 
1,007

 
1,009

 
31,216

 
30,700

 
32,223

 
31,709

Mortgage-backed securities: residential
2,572

 
2,565

 
2,346

 
2,283

 
93,312

 
91,605

 
372,272

 
362,854

 
470,502

 
459,307

Total investment securities available-for-sale
7,035

 
7,028

 
33,603

 
33,477

 
279,078

 
276,674

 
556,089

 
546,064

 
875,805

 
863,243

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
—

 
—

 
—

 
—

 
—

 
—

 
23,434

 
22,790

 
23,434

 
22,790

Other
—

 
—

 
—

 
—

 
—

 
—

 
1,125

 
1,125

 
1,125

 
1,125

Total investment securities held-to-maturity
—

 
—

 
—

 
—

 
—

 
—

 
24,559

 
23,915

 
24,559

 
23,915

Total investment securities
$
7,035

 
$
7,028

 
$
33,603

 
$
33,477

 
$
279,078

 
$
276,674

 
$
580,648

 
$
569,979

 
$
900,364

 
$
887,158



During the three months ended March 31, 2018, the Company recognized gross gains on sales of available-for-sale securities in the amount of $6,000, which represents adjustments to 2017 year end investment sales that settled in January 2018. There were no gross gains on sales of available-for-sale securities during the three months ended March 31, 2017 and December 31, 2017. The Company did not recognize any gross losses on the sales of available-for sale securities during the three months ended March 31, 2018 and March 31, 2017. The Company recognized gross losses on the sales of available-for-sale securities in the amount of $252,000 and had net proceeds of $14 million for the three months ended and December 31, 2017.

FHLB, FRB and other stock

At March 31, 2018, the Company had $17.3 million in Federal Home Loan Bank (“FHLB”) stock, $33.2 million in Federal Reserve Bank of San Francisco (“FRB”) stock, and $31.7 million in other stock, all carried at cost. During the three months ended March 31, 2018 and December 31, 2017, the FHLB did not repurchase any of the Company’s excess FHLB stock through their stock repurchase program. The Company evaluates its investments in FHLB, FRB and other stock for impairment periodically, including their capital adequacy and overall financial condition. No impairment losses have been recorded through March 31, 2018.